Total Delivered Cost (TDC) is the amount of
money
Money is any item or verifiable record that is generally accepted as payment for goods and services and repayment of debts, such as taxes, in a particular country or socio-economic context. The primary functions which distinguish money ar ...
it takes for a
company
A company, abbreviated as co., is a legal entity representing an association of people, whether natural, legal or a mixture of both, with a specific objective. Company members share a common purpose and unite to achieve specific, declared ...
to
manufacture
Manufacturing is the creation or Production (economics), production of goods with the help of equipment, Work (human activity), labor, machines, tools, and chemical or biological processing or formulation. It is the essence of secondary secto ...
and deliver a
product
Product may refer to:
Business
* Product (business), an item that serves as a solution to a specific consumer problem.
* Product (project management), a deliverable or set of deliverables that contribute to a business solution
Mathematics
* Produ ...
. Its components are:
*Total
Manufacturing Cost Manufacturing cost is the sum of costs of all resources consumed in the process of making a product. The manufacturing cost is classified into three categories: direct materials cost, direct labor cost and manufacturing overhead. It is a factor in ...
: Costs incurred up to and inclusive of the
production
Production may refer to:
Economics and business
* Production (economics)
* Production, the act of manufacturing goods
* Production, in the outline of industrial organization, the act of making products (goods and services)
* Production as a stati ...
of finished and wrapped
pallet
A pallet (also called a skid) is a flat transport structure, which supports goods in a stable fashion while being lifted by a forklift, a pallet jack, a front loader, a jacking device, or an erect crane. A pallet is the structural founda ...
s or
unit load
The term unit load refers to the size of an assemblage into which a number of individual items are combined for ease of storage and handling, for example a pallet load represents a unit load which can be moved easily with a pallet jack or fork ...
s, fit for introduction into the warehousing and
distribution chain.
*Product Supply Non-Manufacturing Expense: Administrative and developmental costs associated with the purchase of
material
Material is a substance or mixture of substances that constitutes an object. Materials can be pure or impure, living or non-living matter. Materials can be classified on the basis of their physical and chemical properties, or on their geolo ...
s,
engineering
Engineering is the use of scientific principles to design and build machines, structures, and other items, including bridges, tunnels, roads, vehicles, and buildings. The discipline of engineering encompasses a broad range of more speciali ...
,
design
A design is a plan or specification for the construction of an object or system or for the implementation of an activity or process or the result of that plan or specification in the form of a prototype, product, or process. The verb ''to design' ...
of a plant worthy production process, and administrative costs required to manage it.
*Finished Product Logistics Costs: Costs incurred from the entry of finished, wrapped pallets, or unit loads to the warehousing and distribution chain, until delivery of cases to the customer's receiving dock.
References
*
Costs
{{Finance-stub